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Renew - Expecting a COVID-19 bump up

September 2020

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RNWH
  • Price:
  • 430p
Engineering services company Renew, led now by chief executive Paul Scott, is sailing majestically through COVID-19. When I caught up with Scott back in June, Renew’s first half results had set new records for sales, pretax profit, earnings and operating margins.   These results had covered just a couple of weeks of COVID-19 but brokers suspect that the disruptive impact on forecast earnings is only 10-15% for the full year, with Renew’s Engineering Services side proving to be resilient in the face of COVID-19 because much of what it is doing is maintenance and renewal and its clients do not have the option to stop the work.Around 80% of Renew’s activities continued even throughout the worst of the crisis. The Rail and Highw ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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